What if my Representment is Incorrectly Declined?
And what if a successful RDR or Ethoca submission gets charged back? Read on This blog breaks down the next steps.
Maintaining compliance with the Card Associations is not an easy task. Card-not-present (CNP) delivery, buy now, pay later (BNPL) and digital wallets have exponentially increased the odds of a payment issue. Let’s get square with what a compliance threshold is, why your Processor cares about it, and how your business can remain compliant.
Your chargeback threshold is the ratio of chargebacks to the total amount of processed payments. It quantifies how many purchases are being marked as fraudulent, friendly or not, not received, broken, defective, or an incorrect product or service. Understanding your chargeback threshold and setting up systems to actively monitor chargebacks is essential.
Processors make money on every single transaction that gets processed. But for each transaction, there is always an inherent risk of a chargeback. And every chargeback comes with a fee from the Issuer and Card Association, which the Processor pays—chargeback and service fees are later removed from the Merchant’s account.
Processors care about your chargeback threshold because if they accept too many charged back purchases, they run the risk of being heavily fined by the Card Associations. There is always a risk of the Merchant not having the funds available to pay the chargeback fees. In cases where the Merchant can’t pay for the chargeback, their Processor is responsible for covering the transaction.Merchants usually get referred to a third-party to manage chargebacks and compliance. Third-party services help win representments, set up systems to monitor payments and track the Merchant’s health. But these services tend to charge money by transaction-volume and integrations. This can become costly and never truly uncover the root cause of the chargebacks. Chargebacks might be impossible to completely prevent, but let’s look at some easy ways to decrease the numbers.
Stop leaving revenue on the table. Choose the only tool that alerts you to issues, and provides real-time action plans.
Learn more about Slyce360 todayAnd what if a successful RDR or Ethoca submission gets charged back? Read on This blog breaks down the next steps.
Apple Pay is accepted by over 85% of Merchants. Yet, it still feels like you need to check if Apple Pay is accepted. Let’s dig into why.
Payments can be a minefield of fraud, chargebacks, and changing requirements. Not to worry, here’s a handful of tips for Merchants getting started in Payments.
Seize the opportunity in the CNP RP space